ACT No. X of 2009 An Act to Amend the Civil Code, Cap 16 BE IT ENACTED by the President, by and with the advice and consent of the House of Representatives, in this present Parliament assembled, and by the authority of the same, as

(L.S.) G eorge H yzler

Acting President

19th June, 2009

ACT No. X of 2009

An Act to Amend the Civil Code, Cap 16

BE IT ENACTED by the President, by and with the

advice and consent of the House of Representatives, in this

present Parliament assembled, and by the authority of the same, as

follows:-

The short title of this Act is the Civil Code (Amendment)

Act, 2009, and it shall be read and construed as one with the Civil

Code, hereinafter referred to as “the Code”.

Article 1525 of the Code shall be substituted as follows:-

“1525. (1) A contract of letting and hiring, whether

of things or of work and labour, may be made either verbally

or in writing, provided that a contract of letting and hiring

of urban property and of a residence and of a commercial

tenement entered into after the 1 st January, 2010 shall be in

writing.

The Rent Regulation Board, (hereinafter referred to

as the “Rent Board”), established under” the Reletting of

Urban Property (Regulation) Ordinance shall have exclusive

competence to decide on all matters relating to contracts of

lease of urban property and of a residence and of commercial

tenements. Other leases fall under the competence of

the courts of civil jurisdiction while matters relating to

agricultural leases shall fall under the competence of the Rural

Leases Contol Board appointed according to the provisions of

the Agricultural Leases (Reletting) Act.

The Rent Board has the authority to request information

and documentation from government entities, departments

and authorities as well as from any other entity to meet its

functions as established in this Code.

(2) Unless otherwise specifically stated in this Title, the

provisions of this Title shall not apply to agricultural leases which

shall continue to be regulated by the provisions of the Agriculture

Leases Reletting Act.

(3) For the purposes of this Title

“commercial tenement” means an urban tenement which

is not a residence and which is leased to house an activity

primarily intended to generate profit and includes, but is not

limited to, an office, a clinic, a tenement leased out for the

sale of merchandise by wholsale or retail, a market stall, a

warehouse, a storage used for commercial purposes as well as

any tenement licensed to sell things, wines, spirits or foodstuff

or drinks, theatre, or tenement mainly used for any art, trade

or profession

Provided that a tenement leased to a society or leased

to a musical, philanthropic, social, sporting or political

entity, that is used as a club, shall not be considered as a

commercial tenement even if part of it is used for the purpose

of generating profit;

“club” means any club which is registered as such with

the Commissioner of Police in accordance with the provisions

of the law.”.

For article 1527 of the Code, there shall be substituted the

following new article:-

1527. (1) The lease of an urban property, a

“Letting by co-

possessor

residence

or a commercial tenement that is co-possessed

when voidable.

by more than one person shall always be made by all the

co-possessors subject to the provisions of article 1530.

(2) Should one of the co-possessors also

occupy the co-possessed property, if the parties agree

that a contract of lease be made, such an agreement

shall be made by a contract in writing between all co-

possessors on the one hand and the occupier of the

tenement on the other; and thereafter such person shall

be considered to be a lessee, according to the terms

and conditions of a contract of lease, without losing his

rights as a co-possessor

Provided that this subarticle shall be without

prejudice to the provisions of Title V of the Second

Book, Part I of this Code.

(3) Should a co-possessor of an urban

tenement, a residence or a commercial tenement lease

out such property without authorization by a judgment

of the Rent Board, or in the case of a movable without

authorization of the competent court, or without the

consent of the other co-possessors, such lease may at the

request of any one of the other co-possessors be declared

null, unless such request is made within two months

from the date when such other co-possessor would have

obtained knowledge of such a lease.”.

For article 1528 of the Code, there shall be susbtituted

the following new article

1528. (1) The Rent Board may, at the

board or court

request made by means of an application by one of

the co-possessors of the urban tenement, residence or

authorization.

commercial tenement, authorise the lease of the urban

tenement, residence or commercial tenement, where it

is shown that the tenement is suitable to be leased and

that the proposed lease is advantageous, and that it is

not shown that any of the other co-possessors has a just

cause to oppose such lease

Provided that in the lease of movables all the

provisions of this subarticle shall apply, however the

matter shall fall within the competence of the courts of

civil jurisdiction.

(2) The provisions of subarticle (1) shall also

apply when any one of the co-possessors is absent,

and the Rent Board, in the case of the lease of an urban

tenement, a residence or a commercial tenement (or the

court in the case of the letting or hiring of movables

and other things as the case may be), would not have

received any notice whether the absentee is still living,

or as to his whereabouts.”.

Article 1529 of the Code shall be substituted as follows:-

“1529. The co-possessor who has, in general

terms, given his consent for the lease of the thing, or who,

in spite of his opposition the Rent Board or the court as the

case may be has given, in general terms, his authorization for

the lease of the thing, may, nevertheless, exercise the right of

preference referred to in articles 1591, 1592 and 1593 unless

he has in any manner waived such right.”.

In subarticle (2) of article 1530 of the Code, for the words

“be reduced to the respective period”, there shall be substituted the

words “be reduced to the reasonable period”.

For article 1531 of the Code there shall be substituted the

following new articles:-

1531. The provisions of the last preceding

“When lease

for a longer

section in so far as they restrict the duration of the lease

period

is authorized shall not apply where a longer period of lease has been

by a competent

covenanted with the authorization of the competent

authority.

authority according to law.

1531A. (1)

With regard to the letting of an

Requisites in

writing

urban property, a residence and a commercial tenement

of a contract

made after the 1st January, 2010, the contract of lease

of lease.

shall be made in writing and shall stipulate

(a)

the property to be leased;

(b)

the agreed use of the property let;

(c)

the period for which that property will

be let;

(d) whether such lease may be extended and

in what manner;

(e) and also the amount of rent to be paid

and the manner in which such payment is to be

made.

(2) In the absence of one or more of these

essential requirements, the contract shall be null.

(3) The lease of an urban property, a residence

and a commercial tenement made after the 1st January,

2010 shall be regulated exclusively by the contract of

lease and by the articles of this Code.

1531B. The contracts of lease made before the 1st

June, 1995 shall be subject to the law as in force prior

to the 1st June, 1995 sohowever that from 1st January,

2010 articles 1531C, 1531D, 1531E, 1531F, 1531G,

1531H, 1531I, 1531J, 1531K, 1531L of this Code.

1531C. (1) The rent of a residence which

has been in force before the 1st June, 1995 shall be

subject to the law as in force prior to the 1st June, 1995

sohowever that unless otherwise agreed upon in writing

after the 1st January, 2010, the rate of the rent from 1st

January, 2010 shall, when this was less than one hundred

and eighty five euros (€185) per year, increase to such

amount

Provided that where the rate of the lease was more

than one hundred eighty five euros (€185) per year, this

shall remain at such higher rate as established.

(2) In any case the rate of the rent as stated

in subarticle (1) of this article shall increase every

three years by a proportion equal to the increase in the

index of inflation according to article 13 of the Housing

(Decontrol) Ordinance; the first increase shall be made

on the 1st January, 2013

Provided that where the lease on the 1st January,

2010 will be more than one hundred eighty five euros

(€185) per year, and by a contract in writing prior to 1st

June, 1995 the parties would have agreed upon a method

of increase in rent, after 1st January, 2010 the increases

in rent shall continue to be regulated in terms of that

agreement until such agreement remains in force.

1531D. (1) The rent of a commercial tenement,

unless otherwise agreed upon after 1st January, 2010 or

agreed upon in writing prior to the 1st June, 1995 with

regards to a lease which would still be in its original

period on the 1st January, 2010, shall on the 1st January,

2010 be increased by a fixed rate of fifteen per cent over

the actual rent and shall continue to increase on the 1st

June of each year by fifteen per cent over the last rent

between the 1st January, 2010 and the 31st December,

2013. (2) The rent as at 1st January, 2014 is to be

established by agreement between the parties. In the

event that such agreement is not reached, the Property

Market Value Index shall be considered as a guide to

the rent as may be established by regulations made by

the Minister responsible for accommodation and in the

absence of such regulations, the rent shall from 1st June,

2013 increase by five per cent per year until the coming

into force of the said regulations.

(3) In the case of a commercial tenement, if there

was an agreement between the parties for periodic rent

increases, then such agreement shall continue to apply

without the increases contemplated in this article

Provided that except in such cases where the

increase in rent has been effected following an

agreement, where the increase as proposed herebefore

for commercial tenements is applied, the tenant may by

means of a judicial letter served on the lessor or on one

of the lessors, terminate the lease by giving him advance

notice of three months and this shall also apply if the

lease is for a definite period.

1531E. The external ordinary maintenance of the

lease which would have taken place prior to 1st January,

2010, save unless otherwise agreed upon in writing

between the parties, shall be at the expense of the tenant

and not of the lessor.

1531F. In the event of a lease of a house used as

Definition of a

an

ordinary

residence made prior to 1st June, 1995 that

person who will be occupying the tenement under a

valid title of lease on the 1st June, 2008 as well as his or

her spouse if living together and if they are not legally

separated shall be deemed to be the tenant; when the

tenant dies the lease shall be terminated

Provided further that a person continues the lease

after the death of the tenant under the same conditions

of the tenant if on the 1st June, 2008 –

(i) such person is the natural or legal child

of the tenant and has lived with the said tenant for

four years out of the last five years; and after 1st

June, 2008 continues to live with the tenant until

his death

Provided that, if more than one child has

lived with the tenant for four years out of the

last five years before the 1st June, 2008 and they

continued to live with the tenant until his death, all

such children will continue the lease in solidum;

this lease shall not extend to the wife, husband or

offspring of the child, or

(ii) such person is the brother or sister of

the tenant, who on the death of the tenant is forty-

five years of age or more, or brother or sister of

her husband or his wife who is forty-five years of

age or more, and who has lived with the tenant for

four years out of the last five years before 1st June,

2008 and who after that date continued living with

the tenant until his death

Provided that, if there are more than one

brother or sister who are over forty-five years of

age and who have been living with the tenant for

four years out of the last five years before the 1st

June, 2008 and have continued living with him

until his death, all such brothers or sisters shall

continue the lease in solidum; this lease shall not

extend to the wife, husband or children of the said

brother or sister, or

(iii) such person is the natural or legal child

of the tenant, who is younger than five years of age

and after 1st June, 2008 has continued to live with

the tenant until his death, or

(iv) such person is the natural or legal

ascendant of the tenant, who is forty-five years of

age, and who has lived with the tenant for a period

of four years out of the last five years before the

1st June, 2008 and has continued living with the

tenant until his death; this lease shall not extend to

the wife, husband or children of the ascendant

Provided that if on the death of the tenant,

there are several children, siblings, or ascendants

who all satisfy the criteria of paragraphs (i), (ii),

(iii) or (iv), all those persons shall have the right to

continue the tenancy together in solidum

Provided further that a person shall not be

deemed not to have lived with the tenant for the

sole reason that she has been temporarily absent

from the residence of the tenant due to work, study

or medical care

Without prejudice to the provisions of this article,

a person shall not be entitled to continue the lease

following the death of the tenant, unless such person

satisfies the means test criteria which the Minister

responsible for accomodation may introduce from time

to time.

1531G. In the case of persons who although

failing to qualify to continue the tenancy according to

the criteria laid down in article 1531F but who before

the 1st June, 2008 were residing with the tenant and

continued to reside with the tenant until the tenant’s

death, such persons shall have a right to continue the

tenancy as follows

(a) if the person fails the means test criteria

as stipulated above, the lease shall in any case

continue for a period not longer than three years

from the date of the death of the last surviving

tenant, with a rent which will be double that being

paid by the last tenant;

(b) if a person fails to qualify under other

criteria, not being those of the means test, the lease

shall continue for a period of not more than five

years from the death of the last surviving tenant,

with a rent which will be double that which was

being paid by the last tenant.

1531H. (1) In the case of garages leased before

the 1st June, 1995 that do not form part of a residence

leased to a tenant as an ordinary residence and which

are not considered as a commercial tenement, in the

absence of an agreement to the contrary there shall not

be any right of renewal of the lease after 1st June, 2010;

(2) In the case of a tenement leased before the 1st

June, 1995 and used as a summer residence which is not

the ordinary residence of the tenant, in the absence of an

agreement to the contrary there shall not be any right of

renewal to the lease after 1st June, 2010

Provided that for the purposes of this Title no

tenant shall be deemed to hold more than one ordinary

residence.

1531I. In the case of commerical premises leased

prior to 1st June, 1995, the tenant shall be considered

a commercial

to be the person who occupies the tenement under

a valid title of lease on the 1st June, 2008, as well as

the husband or wife of such tenant, provided they are

living together and are not legally separated, and also in

the event of the death of the tenant, his heirs who are

related by consanguinity or by affinity up to the grade of

cousins inclusively

Provided that a lease of commercial premises made

before the 1st June, 1995 shall in any case terminate

within twenty years which start running from the 1st

June, 2008 unless a contract of lease has been made

stipulating a specific period. When a contract of lease

made prior to the 1st June, 1995 for a specific period and

which on the 1st January, 2010 the original period “di

fermo” or “di rispetto” is still running and such period

of lease has not yet been automatically extended by law,

then in that case the period or periods stipulated in the

contract shall apply. A contract made prior to the 1st

June, 1995 and which is to be renewed automatically or

at the sole discretion of the tenant, shall be deemed as if

it is not a contract made for a specific period and shall as

such terminate within twenty years which start running

from the 1st June, 2008.

1531J. In the case of a tenement leased to an

leased by any

entity and used as a club before the 1st June, 1995

including but not limited to a musical, philanthropic,

social, sport or political entity, when its lease is for a

specific period and on the 1st January, 2010 the original

period “di fermo” or “di rispetto” is still running and

the lease has not yet been automatically extended by

law, then in that case the period of lease established in

the contract shall apply. In all other instances where the

contract of lease was made prior to the 1st June, 1995

the law and all definitions as in force on the 1st June,

1995 shall continue to apply

Provided that notwithstanding the provisions of the

law as in force before the 1st June, 1995, the Minister

responsible for accommodation may from time to time

make regulations to regulate the conditions of lease of

clubs so that a fair balance may be reached between the

rights of the lessor, of the tenant and the public interest.

1531K. In the case of a tenement leased prior to

1st June, 1995 and which is used both as a residential

premises as well as a commercial tenement for which

one rent is paid, this shall be considered to be a

residential tenement to which the rules of this article

regarding residential premises shall apply

Provided that -

(a) with regard to the rate of the rent, the

rent shall be that established for a commercial

premises as stipulated in article 1531D;

(b) if the commercial part will not continue

to be used as such, insofar as the rate of the rent

is concerned, there shall continue to apply the

rent which was payable immediately before the

termination of the use of the commercial part;

sohowever that, the increase in the rent from that

time onwards shall be regulated on the basis of the

rent as established by article 1531C;

(c) where the rent increases in terms of

regulations made as stipulated in article 1531D,

the increase in rent shall be considered only on that

part of the tenement which will actually be used for

a commercial purpose.

1531L. With regard to leases which came into

force on or after the 1st June, 1995 such leases, both of a

on or after the residential and of a commercial tenement, and of urban

1st June, 1995.

property, shall continue to be regulated by the same

terms and conditions agreed upon between the parties

and by law as in force at the time.

1531M. With regard to leases made before the

Lease of other

1st June, 1995 of tenements which are not residences

or commercial tenements, subject to the provisions of

article 1531J relating to clubs, the law and all definitions

as were in force before the 1st June, 1995 shall continue

to apply

Provided that, the Minister responsible for

accommodation may from time to time make regulations

to regulate such leases so that a fair balance may be

reached between the rights of the lessor, of the tenant

and the public interest.”.

Article 1532 of the Code shall be renumbered as

subarticle (1) thereof, and immediately thereafter there shall be

added the following subarticle:-

“(2) The provisions of subarticle (1) do not apply

with regard to the lease of urban, residential and commercial

property made after the 1st January, 2010.”.

Immediately after subarticle (2) of article 1533 of the

principal Act, there shall be added the following new subarticle:-

“(3) The provisions of subarticle (2) do not apply

with regard to the lease of urban, residential and commercial

property made after the 1st January, 2010.”.

Article 1534 of the Code shall be renumbered as

subarticle (1) thereof, and immediately thereafter there shall be

added the following new subarticle:-

“(2) The provisions of subarticle (1) do not apply

with regard to the lease of urban, residential and commercial

property made after the 1st January, 2010.”.

Article 1536 of the Code shall be renumbered as Amendment of article

subarticle (1) thereof, and immediately thereafter there shall be 1536 of the Code.

added the following new subarticle:-

“(2) The provisions of subarticle (1) do not apply

with regard to lease of urban, residential and commerial

property entered into after the 1st January 2010.”.

For subarticle (2) of article 1540 of the Code there shall

be substituted the following:–

“(2) During the continuance of the lease, the lessor

is bound to make all repairs which may become necessary,

excluding building, the repairs mentioned in article 1556, if

he has not expressly bound himself to this effect.

(3) For the purposes of this Title with regard to an

urban, residential and commercial tenement, “structural

repairs” shall be deemed to be those relating to the structure

of the building itself, including the ceilings.

(4) When the lessor in the case of a residence leased

prior to the 1st June, 1995 carries out structural repairs which

have become necessary not due to his own fault, then the rent

shall be increased by six per cent of the costs incurred

Provided that where the structural repairs have not

become necessary due to a fault of the lessee, then the said

lessee has the right to terminate the lease even though the

period of the lease has not yet lapsed

Provided that in the cases where the lessor is willing

to carry out these repairs, the lessee may choose to carry out

such repairs at his expense, and in such an event the rent shall

remain unchanged; however the lessee shall in such case

have no right for any full or partial compensation for such

structural repairs at the termination of the lease.”.

For article 1541 of the Code, there shall be substituted

the following:-

“1541. (1) If the lessor, on being required so to

do by means of a judicial act, fails to carry out the repairs

to which he is bound, it shall be competent to the lessee to

request, by application, authorization to carry out such repairs

at the expense of the lessor, under such conditions as the Rent

Board, or the Court or the Rural Leases Control Board, as the

case may be, may deem proper in the circumstances.

(2) The lessee shall have the right to keep the rent

due or the rent which is still due to be paid, so that he will

be paid back for such expenses, subject to his rights for any

greater amount, if the amount of those expenses is more than

such rent; in this case the lessor has no right to increase the

rent as mentioned in article 1540 (4).”.

Article 1543 of the Code shall be substituted as

follows:-

“1543. It shall be lawful for the lessee, without the

necessity of any proceedings, to carry out at the expense of

the lessor the urgent repairs; and, the omission or delay of

which might cause to him serious prejudice: and, in any such

case, he may, for the purpose of reimbursement, retain the

rent as provided in article 1541

Provided that the lessee shall be bound to inform as soon

as possible the lessor about these circumstances and to deliver

to him a report by an expert as to the urgency of such repairs

and their estimated value and the prejudice which might result

from such delay

Provided also that the lessor shall be entitled to assume

the continuation of the repairs commenced under the

provisions of this article.”.

In article 1544 of the Code, for the words “fixed by the

court, the lessee” there shall be substituted the words “fixed by

the“Rent Board (or the court or the Rural Leases Control Board as

the case may be), the lessee”.

Immediately after article 1548 of the Code, there shall

be added the following new article:-

1548A. During the running of the lease of an

“Right of

access to the

urban, residential or commercial tenement, the lessor

tenement by

has right of access to the tenement in such times and in

the lessor.

such manner agreed upon with the tenant in order that

the lessor may fulfill his duties or to verify whether the

tenant is performing his obligations, as well as to show

the tenement to prospective buyers

Provided that in the absence of an agreement

between the parties, the Rent Regulations Board may,

if need be, after hearing the parties summarily, fix days,

times and conditions, after an application filed by the

lessor for that purpose. The Board may give a decree

during the sitting or in the chambers without hearing the

parties. The decree shall be given within five working

days from the date when the tenant is served with a

notice. The Rent Board may order the inspection to

be done under the supervision and in the presence of a

Court Marshal. In this function, the Rent Regulation

Board shall also take into account the tenant’s right to

privacy and shall verify that no abuse is made of the

lessor’s right as provided in this subarticle. In such case,

no appeal may be made from the said decree.”.

In article 1554 of the Code, for the words “of section

1534” there shall be substituted the words “established by law”.

For article 1555 of the Code there shall be substituted

the following articles:–

1555. If the lessee uses the thing leased for any

purpose other than that agreed upon by the parties, or as

presumed in the previous article, or in a manner which

may prejudice the lessor, the lessor may, according to

circumstances, demand the dissolution of the contract.

1555A. (1) In the case of a residential tenement,

failure to use the tenement for a period exceeding twelve

months shall be deemed to be bad use of the thing leased

in terms of article 1555

Provided that when a person has failed to use the

leased tenement due to being temporarily absent from

the tenement due to work, study or health care, then such

failure shall not be deemed to be bad use.

(2) When the lessee of a lease which started

before the 1st June, 1995 is recovering in hospital or

in an old people’s home, and where such institution

certifies or where it conclusively results that the same

tenant is permanently dependent on the institution, the

lease of that tenement shall be transferred to the person

mentioned in article 1531F

Provided that when the tenant does not remain in

the tenement due to total dependence on the institution

as certified by the same institution or as it otherwise

results and there is no right of transfer of the lease as

herebefore mentioned, or the transfer is accepted by the

person qualifying therefor, the lessor may request the

dissolution of the contract.

(3) In the case of commercial premises,

failure to use the said tenement for a commercial

purpose in accordance with the provisions of a contract

of lease shall be deemed to be bad use of the thing

leased in accordance with the provisions of article 1555.

(4) The provisions of article 1555 shall

also apply in the case of rural tenements, if the lessee

abandons the cultivation thereof, or does not cultivate

the said tenement as a bonus paterfamilias, and the

lessor may thereby suffer prejudice in respect of which

no security was given to him.

(5) In any of the aforesaid cases, apart from

those cases where the lessee forfeits the lease due to his

recovery in an institution, the lessee shall also be liable

to pay damages.”.

Article 1556 of the Code shall be substituted as

follows:-

“1556. The lessee of an urban tenement is responsible

for all repairs other than structural repairs

Provided that if such repairs are not carried out

appropriately and according to good workmanship the lessor

shall have the right to request the Rent Board to authorise him

to carry out such repairs at the expense of the lessee

Provided further that in those instances where new repair

obligations have been imposed on the lessee which were not

incumbent upon him before the 1st June, 2008 the failure by

the lessee to undertake such repairs before the 1st January,

2009 shall not in any way expose the lessee to damages or

any other form of punitive measures such as an action for the

termination of the lease.”.

Article 1557 of the Code shall be substituted as

follows:-

“1557. The lessee shall in no case be responsible for

the repair of damages caused by force majeure and without

any fault of his own.”.

Article 1558 of the Code shall be substituted as

follows:-

“1558. The cleansing of cisterns and sinks, of cess pits

and of chimneys shall be at the charge of the lessee.”.

In article 1560 of the Code, the words “, even as regards

the repairs mentioned in section 1556” shall be deleted.

In article 1566 of the Code, for the words “A contract of

letting” there shall be substituted the words “Without prejudice to

the provisions of articles 1531A to 1531M, a contract of letting”.

Article 1570 of the Code shall be substituted as

follows:-

“1570. A contract of letting and hiring may also

be dissolved, even in the absence of a resolutive condition,

where either of the parties fails to perform his obligation; and

in any such case the party aggrieved by the non-performance

may elect either to compel the other party to perform the

obligation if this is possible, or to demand the dissolution of

the contract together with damages for non-performance

Provided that in the case of urban, residential

and commercial tenements where the lessee fails to pay

punctually the rent due, the contract may be terminated only

after that the lessor would have called upon the lessee by

means of a judicial letter, and the lessee notwithstanding such

notification, fails to pay the said rent within fifteen days from

notification.”.

For article 1572 of the Code there shall be substituted

the following

“1572. Without prejudice to the provisions of articles

1531A to 1531M a contract of letting and hiring of a thing is

not dissolved by the death of the lessor or of the lessee.”.

In article 1576C of the Code, for the words “court” there

shall be substituted the words “Rent Board”.

In article 1576D of the Code, for the words

“confirmation by the court” there shall be substituted the words

“confirmation by the Rent Board”.

Article 1603 of the Code shall be substituted as

follows:-

“1603. If, on such sworn application, the lessee

fails to establish the sufficiency of the security, the Rent

Board may, before giving judgment, allow him a time not

exceeding eight days within which to produce a fresh security,

and if such fresh security, whether alone or together with

the previous one, is not deemed by the Rent Board as being

sufficient, the Rent Board shall proceed to give judgement on

the aforesaid application, declaring the right of preference as

having lapsed.”.

Paragraph (f) of article 1607 of the Code, for the words

“to do so by judicial proceedings” there shall be substituted the

words “to do so by the Rent Board”.

In article 1608 of the Code, for the words “and by the

court deemed” there shall be substituted the words “and by the

Rent Board deemed”.

In article 1609 of the Code, for the words “opinion of

the court” there shall be substituted the words “opinion of the Rent

Board”.

Article 1613 of the Code shall be substituted as

follows:-

“1613. In the absence of other special provisions, the

contract of subletting is regulated by the same provisions

which regulate the contract of letting and hiring

Provided that in the case of the sub-letting of

commercial tenements before the 1st June, 1995, these

shall be terminated on the 31st May, 2018 unless done by

agreement with the lessor, in which case such sub-lettings

shall be regulated by such agreement

Provided further that the lease shall be established

according to that laid down in article 1513D of this Code.”.

Article 1614 of the Code shall be substituted as

follows:-

“1614. (1) The lessee is not entitled to sub-let a thing

or to assign its lease, unless such right was agreed upon in the

contract.

(2) For the purposes of this Sub-title, a

management agreement or any other form of agreement,

by means of which a lessee transfers to third parties the

possession of the tenement or of the business operated from

the commercial tenement shall be considered as sub-letting.

(3) Where the lessee is a limited liability company

or any other form of company, the cumulattive inter vivos

transfer of fifty per cent of the shareholding, even if carried

out by means of more than one transfer and, or the transfer

of the actual controlling power of the administration of such

company or of the control of the business conducted from the

tenement shall be considered as a sublease

Provided that such a transfer shall not be considered as

a sublease if the transfer was made to the wife or husband

who are not legally separated and, or to the children of the

shareholder.”.

Article 1615 of the Code shall be substituted as

follows:-

“1615. (1) The lessee may house third parties in

parts of the residential property against payment unless

this is expressly forbidden in the contract and subject to the

provisions of article 1555.

(2) The lessee shall also be entitled to accept

other persons to dwell with him against payment of part of

the rent, or against any other consideration, unless such right

has not been expressly forbidden by the contract.”.

In article 1618 of the Code, for the words “been

excluded, the lessor” there shall be substituted the words “be

excluded and also where it has been agreed upon, the lessor”.

Immediately after article 1622 shall be added the

following article:–

1622A. The

Minister

responsible

for

“Power

accommodation following consultation with the Minister

to make

regulations.

responsible for finance may make regulations for all or

any of the following purposes

(a) to draw up a model contract of lease

that may be used by the parties concerned;

(b) to enable the proper implementation

of the provisions of this Title and to implement

such necessary measures to give it full effect and

to allow for its proper administration, including

Board procedures;

(c) to create a registry for the deposit or

registration and, or de-registration of contracts of

letting for any purpose which the Minister may

establish, including for the purpose of the validity

itself of the same contracts, and to do all that is

necessary for this purpose;

(d) to create a structure establishing and

administering the Market Property Value Index;

(e) to establish criteria for a means test for the

purposes stipulated in article 1531F of this Code;

(f) to establish regulations and criteria for the

purpose of articles 1531J and 1531M of this Code;

(g) to extend the application of the provisions

of this Code regarding the lease or part of it

with regards to cases where a person has been

accommodated in a residence under the Housing

Act, or where a public authority has taken

possession of a residence in terms of the Land

Acquisition (Public Purposes) Ordinance, or under

any other law which is or has been in force from

time to time;

(h) to provide transitory arrangements in

the case of removal of requisition orders issued

according to the Housing Act;

(i) to provide for the removal or

modification of any transitory provisions contained

in the Condominium Act;

(j) to provide with respect to any thing

about which he may make regulations in terms of

the provisions of this Title.”.

Immediately after the Second Schedule to the Code

there shall be added the following new schedule:-

“THIRD SCHEDULE

Lease of an urban property, residence and commercial

tenement

This, ………… day of ………………………

By the present private writing there appear on the one

part ……………………… son of …………………………

and ………………………… neè ………………… born in

…………………………… and residing at ………………………

holder of Identity Card Number …………… hereinafter referred

to as the lessor.

And on the other part ………………………… son of

……………………………… and ……………………… neè

……………………… born in ……………………… and

residing at ……………………… holder of Identity Card Number

………………… hereinafter referred to as the lessee.

And hereby the parties agree on the following

a. the lessor is granting by title of lease to the lessee who

under the same title of lease accepts the premises ....................

b. the lessee

may

use

the

leased

premises

for

c. this lease is being made for a period of ...........

commencing from .................

d. the parties agree that on the termination of this

lease it may not be renewed / shall be renewed as follows

…………………

e. the rent payable for this lease shall be …………… that

shall be due each ………………… in advance / in arrears.”.

The Reletting of Urban Property (Regulation) Ordinance

shall be amended as follows:-

(a) immediately after subarticle (3) of article 16 there

shall be added the following new subarticle

“(4) Without prejudice to any other law the Board

shall also decide all matters affecting the leases of urban

property including residential as well as commercial

property in terms of Title IX of Part II of Book Second

of the Civil Code, Of Contracts of Letting and Hiring,

including causes relating to the occupation of urban

property where such leases have expired.”;

(b) immediately after article 16 thereof, there shall be

added the following new article:-

16A. (1) (a) In actions before the Rent Board,

where the demand is solely for the eviction of any person

from the lease or sub-lease of any urban, residential or

commercial tenement, with or without a claim for rent

or any other consideration due or by way of damages for

any compensation, up to the date of the surrender of the

tenement, it shall be lawful for the applicant to demand

in the sworn application that the Board gives judgment

allowing his demand, without proceeding to trial

Provided that the applicant shall, in his sworn

application state that the respondent has no defence to

the action

Provided further that the applicant shall also file

together with the application a sworn affidavit containing

facts relative to the claim, and confirming that such facts

are within his knowledge. The applicant may also file

together with his application an affidavit of any other

third party confirming facts relative to the claim.

(b) In the cases provided for in this article,

the sworn application shall be in writing according to

the prescribed form and shall contain an order to the

respondent to appear before the Board, on an appointed

day and at a stated time.

(c) In the cases provided for in this article,

the sworn application shall also indicate clearly that the

procedures conducted are special summary procedures

where judgement shall be given at the first hearing of the

case should the respondent fail to appear at that sitting or

should he fail at that sitting to show that he has a valid

defence to put forth to rebut the applicant’s claims.

(2) A copy of the sworn application shall be

served upon the respondent.

(3) In the cases referred to in subarticle (1)

hereof, the sworn application shall be served on the

respondent without delay; and he shall be ordered to

appear not earlier than fifteen days and not later than

thirty days from the date of service

Provided that in the case of non-observance of

the provisions of this article the Board shall not stop

proceedings by special summary proceedings but shall

give such orders as it may consider appropriate so that

the rights of the parties be not prejudiced.

(4) The sworn application, and the affidavit

produced therewith, and any order referred to in

subarticles (2) and (3) hereof shall be served by means

of any executive officer of the courts.

(5) (a) If the respondent fails to appear to the

sworn application, or if he appears and does not contest

the proceedings taken by the applicant, on the ground of

irregularity or inapplicability, or, having unsuccessfully

raised such plea, does not by his own sworn evidence,

or otherwise, satisfy the Board that he has a prima facie

defence, in law or in fact, to the action on the merits, or

otherwise discloses such facts or issues of law as may

be deemed sufficient to entitle him to defend the action,

the Board shall forthwith give judgement, allowing

the applicant’s claim. The respondent may make

his submissions to contest the proceedings taken by

applicant on the ground of irregularity or inapplicability

by means of a note to be filed in the registry of the Board

or during the hearing.

(b) If the respondent successfully contests

the proceedings on the ground of irregularity, or

inapplicability, or if he satisfies the Board that he has a

prima facie defence to the action, or discloses such facts

or issues of law as may be deemed sufficient to entitle

him to defend the action or to set up a counter-claim, he

shall be given leave to defend the action and file a reply

within twenty days from the date of the order referred to

in paragraph (d) hereunder.

(c) Where leave to defend is given, the

action shall be tried and determined, on the same acts, in

the ordinary course as provided in this Ordinance.

(d) The order giving leave to defend shall

be made orally, a record thereof being kept in the

proceedings.”; and

(c) in article 46, immediately at the end of subarticle

(1) thereof, there shall be added the following proviso:-

“Provided that articles 16 to 45 of this Ordinance

shall also apply to all leases made after the 1st June,

1995.”.

(1) Leases which were in force before the 1st June,

1995, and which are still in force on the 1st January, 2010, shall

continue to be regulated by the laws which were in force before

the 1st June, 1995, other than the provisions of Title IX of Part II

of Book Second of the Civil Code, Of Contracts of Letting and

Hiring, as amended by this Act and subject to any regulations made

in virtue of the amendments introduced by this Act.

(2) Leases which were granted after the coming into

force of the Housing Laws Amendment Act, 1995, and which are

still in force on the 1st January, 2010, shall continue to be regulated

by the provisions of the said law insofar as they are not affected by

the provisions of Title IX of Part II of Book Second of the Civil

Code, Of Contracts of Letting and Hiring, as amended by this Act.

(3) Sohowever that where by this Act further

obligations were made incumbent on the lessee which before

the 1st June, 2008 were not incumbent on him, failure to fulfil

those obligations before the 1st January, 2010 may not in any

manner make the lessee liable for any damages or other adverse

consequences such as an action for the termination of the lease.

(4) The provisions of Title IX of Part II of Book

Second of the Civil Code, Of Contracts of Letting and Hiring,

shall also apply to the letting of urban tenements where terminated

contracts of emphyteusis or sub-emphyteusis have been or are

about to be converted into leases by virtue of the law

Provided that in the case of leases made by virtue of

the Housing (Decontrol) Ordinance, the provisions of the said

Ordinance defining the person to be considered as the lessee and

the provisions providing for the transfer of the lease after the

demise of the lessee shall continue to apply notwithstanding the

aforesaid provisions of the Civil Code.

(5) The Rent Board appointed by virtue of the

Reletting of Urban Property (Regulation) Ordinance shall have

exclusive jurisdiction to decide matters connected with the letting

of urban property including both commercial tenements and

residences. Sohowever that causes relating to lease contracts which

on the 1st January, 2010 are still pending before the Courts or other

Tribunals shall still be dealt with by the same Courts or Tribunals.

(6) Nothing in this law and in the Civil Code as

amended by this Act shall be deemed to lessen the powers

pertaining to the Director, Social Accommodation, to the Housing

Authority, or to any other person who exercises public authority

owing to such person’s office, by virtue of the Housing Act or by

virtue of the Housing Authority Act.

(7) Without prejudice to the provisions of the Civil

Code as amended by this Act, the renewal of a lease after the 1st

June, 1995 or after that date (whether such renewal is conventional,

legal, customary or otherwise) shall not be considered as a lease

agreed on the 1st June, 1995 or after that date and the renewal of

a lease on the 1st January, 2010 or after that date (whether such

renewal is conventional, legal, customary or otherwise) shall not

be considered as a lease agreed on the 1st January, 2010, or after

that date.

(8) Save as the Minister responsible for accomodation

may by regulations otherwise provide, nothing in this Act shall

affect the applicability of

(a)

the Land Acquisition (Public Purposes) Ordinance;

(b)

the Housing Act;

(c)

the Disposal of Government Land Act; and

(d) article 8 of the Reletting of Urban Property

(Regulation) Ordinance.

as in force immediately before the coming into force of this Act.

(9) Without prejudice to the other provisions of

this Act, the provisions of this Act shall apply to leases where

Government is the owner or the lessee.”.

Passed by the House of Representatives at Sitting No. 129 of 16th June, 2009.

L ouis G alea

Speaker

P auline A bela

Clerk to the House of Representatives